Conference Call summary as below from screener.
In call one of the participant asked management why market is massively undervaluing company.
Financial Performance:
- Revenue milestone achieved: INR3,000 crores of revenue and INR1,000 crores of PAT year-to-date
- Q3 FY '24 results: Consolidated total revenue of INR795.6 crores, 55% growth; Net profit of INR212.7 crores, 3.5x growth
- Guidance for FY '24: Expecting to surpass INR1,200 crores PAT and sales close to INR4,000 crores
Business Segments:
- Segmental split for Q3: API - INR46.3 crores, Formulation domestics - INR99.4 crores, Formulation exports - INR605.6 crores, Crop health - INR14.1 crores
- AgChem business performance impacted by weather patterns, expecting growth in international markets
- U.S. market performance: Copaxone, Everolimus, Lanthanum, Lapatinib performing well, focus on complex generics
- Domestic formulation business: Oncology driving growth, looking to expand portfolio
Strategic Initiatives:
- Update on Kothur facility FDA classification awaited, risk mitigation strategy implemented
- M&A strategy: Looking for a large acquisition in Emerging Markets, strong financial position with net cash at INR1,800 crores
- RoW subsidiaries: Brazil and Canada performing well, expanding to Colombia and Indonesia, looking for acquisitions to grow business
- Investment in Cellogen for CAR-T therapy program
- Strategic investments in new technologies like gene therapy and CAR T-cell therapy
Product Development:
- NCE development: NRC-2694 Phase II trials in the U.S. and India for niche indication, strategy around NCE for future growth
- Phase II progress on new products
- Future product pipeline and potential for new revenue drivers
Capex and Expansion:
- Capex spending for the current year and future projections
- Impact of capex on fixed asset turnover
- Future outlook on capex and capacity optimization
- Expansion into agrochemical business and future growth prospects
Market Opportunities and Risks:
- Export opportunities in the agrochemical sector
- Differentiation in agrochemical portfolio compared to competitors
- Major risks including currency, inspection, and pricing risks
Other:
- Consideration of corporate actions like buybacks
- Return on capital expectations for acquisitions
- Future guidance on Revlimid sales and performance
- Closing comments and appreciation for investor interaction
D: Invested
Subscribe To Our Free Newsletter |